Derry house prices up 3.5% (£6,760) to £198,203 but are lowest in the North
The average price of a home in Derry and Strabane rose by 3.5 per cent (£6,760) from £191,443 to £198,203 in the second quarter of 2025.
Derry & Strabane, however, recorded the lowest property prices in the North during April, May and June 2025, marginally lower than Armagh, Banbridge and Craigavon where the average price of a home was £198,889.
Year-on-year house prices locally were up six per cent (£11,235) from £186,968 in Q2 2024 to £198,203 in Q2 2025.
The latest Quarterly House Price Index, produced by Ulster University in partnership with the Housing Executive and Progressive Building Society, reveal the housing market across the North continued to build momentum through the second quarter of 2025, with modest growth in prices and increased market activity.
"A total of eight out of the 11 districts saw price increases in the second quarter compared to the first quarter of 2025, with the largest in Fermanagh & Omagh where prices were up 7 per cent, followed by Mid & East Antrim, up 6.4 per cent, Armagh City, Banbridge & Craigavon, up by 4.6 per cent, and Antrim & Newtownabbey, up by 3.9 per cent.
"Prices also rose by 3.5 per cent in Derry City & Strabane, by 2.7 per cent in Newry, Mourne & Down, by 2.3 per cent in Causeway Coast & Glens and by 1.8 per cent in Ards & North Down.
"In terms of price decreases, house prices in Lisburn & Castlereagh fell 0.4 per cent and dropped by 1 per cent in Mid Ulster and by 3.2 per cent in Belfast,” the report states.
Across the North as a whole the average property price for Q2 2025 stood at £215,713 – a 1.4 per cent increase from the previous quarter and up 2.7 per cent compared to the same period last year.
Despite wider economic pressures, buyer and seller confidence appears resilient, helping to sustain steady growth across most regions and housing types.
Signs of increased activity were evident, with more listings, strong bidding interest, and a generally positive market sentiment. More than 70 per cent of estate agents surveyed reported an uplift in activity compared with Q1, and 60 per cent saw a rise in new listings.
The report’s authors described the housing market’s performance as impressive given the economic context.
Wage growth slowed to 5 per cent in early 2025, while unemployment rose to 4.7 per cent – the highest level in four years. With inflation sitting at 3.6 per cent in June and employer tax hikes impacting the job market, there’s uncertainty about whether current housing trends will hold.
All property types except apartments saw price increases this quarter:
· Detached homes rose by 2.4% quarterly, with an annual rise of 0.3 per cent, bringing the average price to £315,200.
· Terrace/townhouses saw a 1.6 per cent quarterly rise and a 4.3 per cent annual increase, with average prices at £148,930.
· Semi-detached homes grew more modestly by 0.9 per cent quarter-on-quarter and 3.3 per cent annually, now averaging £202,276.
· Apartments saw a 3.8 per cent drop in price from the previous quarter but still posted a 1.4 per cent rise compared to Q2 2024, with an average price of £158,449.
Dr Michael McCord, lead researcher and Reader in Valuation, Investment and Finance at Ulster University said: “The analysis this quarter shows that the average house price stood at £215,713, representing a 2.7 per cent annual increase compared with Q2 2024, and a 1.4 per cent rise from Q1 2025.
"This reflects a continuation of the steady upward trend observed since mid-2024. Market sentiment remains high with the housing market displaying growing optimism amongst buyers, increased bidding and consumer activity.
“Whilst some caution exists, particularly in relation to the Bank of England’s Monetary Policy Committee decision to hold interest rates, there looks the likelihood that interest rates will see a cut over the second half of 2025, and ultimately increased lender competition.
"Some headwinds persist – notably the slowdown of annual pay growth and an increase in unemployment rates, however these remain to be seen and the market looks to remain settled and buoyant.”
Ursula McAnulty, Head of Research at the Northern Ireland Housing Executive, which commissions the research, said: “In the second quarter of 2025, the analysis continues to suggest a buoyant market, with consumer confidence strong, market listings and completions up, and ongoing price stability.
"We had expected that the recent changes in Stamp Duty might slow the market a little, but there’s no evidence of any real impact, at least in the second quarter.
“Agents remain largely positive about market sentiment, with several agents pointing to competition among mortgage lenders and the potential for interest rate base cuts as key tailwinds for the market, anticipating that these factors could sustain the continued market over the next two quarters.”
Michael Boyd, Chief Executive of Progressive Building Society said: “As we move into the second half of 2025, the Northern Ireland housing market continues to show resilience, with steady price growth and increasing activity across key segments. Improved mortgage conditions, particularly the increasing number of mortgage products being offered, have opened up opportunities for buyers and helped sustain demand.
“Agent sentiment remains broadly positive and we are seeing increased market activity and completions as well as ongoing price stability.
“Nonetheless, persistent economic pressures, including rising unemployment and slower wage growth, are creating some headwinds that we will be monitoring closely.
“Overall, the market remains in a stable position, but the balance of the year will be critical in determining the pace and durability of progress.”